Corbion has announced that it has completed the acquisition from Bunge Limited of Bunge's stake in the SB Renewable Oils joint venture.
Corbion has acquired Bunge's 49.9% stake in SB Renewable Oils, a joint venture that operates a facility in Brazil, specializing in the production of algae ingredients, such as Omega 3 rich oil, for aquaculture and animal feed. Corbion is now 100% owner of the plant in Orindiúva, which employs around 170 staff.
"We are delighted to welcome the team in Orindiúva as part of our global family," said Tjerk de Ruiter, CEO Corbion. "They are a pivotal part of our Algae Ingredients business, the innovative platform we acquired last year. We are strongly committed to developing this line of business."
Corbion has assumed Bunge's share in the external debt of the joint venture, including accrued interest (BRL 57 million equates to US$ 15 million) and has repaid Bunge's working capital loan (BRL 29 million equates to US$ 8 million). Additionally, a 5-year earn-out provision starting in 2021 has been agreed to. This earn-out is based on sales of AlgaPrime DHA, with a maximum present value of US$ 20 million.
As the SB Renewable Oils plant is located adjacent to one of Bunge's sugar mills, long term supply agreements have been secured regarding sugar and utilities. Approval by the relevant regulatory bodies in Brazil has been obtained.
